If two firms have the same current dividend and the same expected growth rate, their stocks must sell at the same current price or else the market will not be in equilibrium.

Question $4$Select one:

A$.$

true, if investors are risk$-$averse

B$.$

true, because we are using a dividend valuation model

C$.$

false, because the required return could be different

D$.$

true, if markets are semi$-$strong form efficient